Quotation Rocha-Akis, Silvia. 2008. Wage Taxation in the Presence of Unionized Labour and Internationally Mobile Firms. International Trade and Finance Association (ITFA), Lisbon, Portugal, 21.05-24.05.


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Abstract

In a model with a unionised and immobile labour force we analyse labour tax-and-transfer policies when the government faces oligopolistic firms, part of which are internationally mobile. We show that a government, that seeks to maximise the domestic producer and consumer surplus may prefer a high tax- transfer regime consistent with offshoring, to an equilibrium with low taxes and no offshoring. Broadly speaking, by increasing labour taxes, the government discourages tough wage claims from the labour union, thereby contributing to an increase in overall output and profits, albeit at the cost of a decrease in domestic employment.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Wage Taxation in the Presence of Unionized Labour and Internationally Mobile Firms
Event International Trade and Finance Association (ITFA)
Year 2008
Date 21.05-24.05
Country Portugal
Location Lisbon

Associations

People
Rocha-Akis, Silvia (Former researcher)
Organization
Department of Economics (Kartal) (Details)
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